...Fundamentals of Macroeconomics paper ECO 372 January 20, 2014 Fundamentals of Macroeconomics paper In this assignment we have been asked to dive into the fundamentals of macroeconomics. Macroeconomics looks at the economy and attempts to answers the questions such as economy to growth over time, short-run fluctuations in the economy, and performance issues. In order to understand and answer these questions one must first understand the fundamentals and the components that drive the economy. Throughout this paper we will describe the fundamentals that make our economy; these fundamentals are Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The gross domestic product or GDP, measures countries output of all goods and services that are produced in the country (Amadeo, 2014). The factors of the gross domestic product are personal consumption expenditures plus business investments plus government spending plus exports minus imports (Amadeo, 2014). After one understands the factors of the gross domestic product it is easy to calculate the gross domestic product if one fallows this simple formula C + I +G+ ( X – M ) (Amadeo, 2014). The next component is the Real GDP. The Real GDP is a measurement of the economic output of a country minus inflation. This allows a person to evaluate the economy's production for each quarter more accurately (Amadeo, 2014). By doing this a person can tell if more product is being produced...
Words: 960 - Pages: 4
...Fundamentals of Macroeconomics Paper Desires and wants help represents a part of what economics stands for and the way people governors themselves in society. In today’s society the way a person lives helps the economy decides on the product of things that are produced for consumer’s way of living. To help understand some of the fundamentals of macroeconomics these definition will give a clearer example of what macroeconomics stands for. Gross domestic product (GDP) let you know the about the total market value of all products of good that have been produced in a year’s time. The real (GDP) will state the price of all the total goods that have been produced in that given year. Nominal (GDP) things that are not adjusted for inflation but a price will be figured. Unemployment rate shows the total work force that is not working at any given time. Inflation rate describes how prices are easily calculated and in changed in a matter of time. Interest rate is experience by all folk it is the given amount calculated on the price for the use of using someone else money. Purchasing of groceries, massive layoff of employees and decrease in taxes are economic activities that go on daily in the world. As stated “The quantity of goods, services, and usable resources depends on technology and human action (Colander, 2010, p. 5).” Without the purchasing of different products or spending, there will be no employees of taxes to increase or decrease. The purchasing of groceries...
Words: 739 - Pages: 3
...Fundamentals of Macroeconomics Paper This paper will include definitions of terms used in economics or macroeconomics as well as scenarios related to economics and how these terms and scenarios work together. Understanding these terms are important to doing business in today’s world and can help one gain a clearer picture of how things work in terms of money. Monetary rules help make life a bit easier by avoiding chaos, even if there are some that do not agree. One term used in economics is gross domestic product or GDP. GDP is defined as the final count on products that are manufactured within a given country and under a certain time period. The GDP includes products consumed for public and private use, government use, exports, and investments. Imports are not calculated in GDP because these goods are not produced in the specific country. The formula for calculating the GDP is GDP = C + G + I + NX. The C in this expression stands for the consumption or spending that occurs within a country during a given time period (normally a year) on the public or private sectors. The G in the expression stands for government consumption or spending in the same time frame in a given country. The I in the expression stands for the total number of what businesses within a given country spend on capital in that particular year, and the NX in the expression stands for the country’s exports – imports in that same year. Another term used in economics is Real GDP. Real GPD is defined as the...
Words: 1458 - Pages: 6
...Fundamentals of Macroeconomics Cleveland Ivery ECO/372 Version 4 11/03/2013 Spyridon Patton Part 1 Macroeconomics includes a variety of terms relevant to its study. The following terms help identify key factors that influence the U.S. economy. The Gross Domestic Product (GDP) is a measure of a country’s value based on goods produced, services rendered, government spending, and the difference of exports minus imports. The Real GDP is the measure of the output of GDP that is acclimated for inflation or deflation. It is also the amount of the nation’s net exports during a given term say a month or a year, which is expressed in a dollar amount. Economists measure, record, chart, and analyze the trends and fluctuations in the GDP. They use the data to gauge which state of the business cycle the economy is in: contraction, trough, expansion, or peak. This information influences whether businesses will save or invest, hire or fire, and survive or die. The Nominal GDP is a little different in such that the change in price is not accounted for. Unemployment rate refers to the percentage of the American population that is eligible to work but are current jobless. Inflation rate is the percentage change in the increase of the price of goods and services...
Words: 748 - Pages: 3
...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
Words: 960 - Pages: 4
...Fundamentals of Macroeconomics Paper Eric R Drayton ECO/372 June 9, 2014 Mr. Robert Freitaas, Jr. Fundamentals of Macroeconomics Paper Macroeconomics is a field developed to measure the economic health of the government, by using the Gross Domestic Product, and the unemployment rate along with the rise and fall of inflation. Such things as the purchasing of food for the household too Massive layoff of employees, and the Decrease in taxes all play a major role in the overall health of the country, Purchasing of Food is a necessity need for us as humans and by purchasing food it is something that will affect every household, and is something that cannot be ignored. Purchasing of food will affect the government in that depending on the state of inflection will make the different in how much grocery a family can buy pre week are month from the local store .Inflation also may affect the over-all amount of money that the average family will purchase and may cost them to cut back on their spending because of the prices of the goods. The purchasing of grocery is also affected by Massive lay-offs and the decrease in taxes affect the way families spend on grocery do the coast of the month would normal spend on groceries. Every household is affected by the amount of groceries that are purchased because there has to be enough for everyone to eat within the time frame of grocery shopping, Which means some household may have to turn to the government assistance programs to purchase...
Words: 675 - Pages: 3
...University of Phoenix Fundamentals of Macroeconomics paper ECO/372 September 10, 2012 First Part The gross domestic product is a measure of country’s value: Goods produced + Service rendered + Government Spending + (Exports)-(imports) = GROSS DOMESTIC PRODUCT Real Gross Domestic Product equals to the measure of the output of the Gross domestic Product that is acclimated for inflation or deflation. The Nominal Gross Domestic Product differs specially on the aspect that the change in price is not accounted. The unemployment rates is the quantity of people that are able to work due to their age, studies or other conditions but are currently unemployed. Inflation rate is the variation that can be positive or negative of goods or service. Most of the time when the inflation is negative it’s also call deflation but sometimes it’s common to see a negative inflation. Interest rate is the annual % divided by the quantity owed each month on borrowed capital. Second Part On the second part of the paper some things that are explained in the first part will make a complete sense when they become related with real life examples. I will show the link between the following economic activities: Purchasing of groceries Massive layoff of employees Decrease in taxes The economy of a nation is a large number of factors linked each other and strictly related that easily become an ecosystem just as in the...
Words: 716 - Pages: 3
...Fundamentals of Macroeconomics Paper Laterrious Robinson ECO/372 Nov. 27, 2012 Eugene Kaufman University of Phoenix Fundamentals of Macroeconomics Paper Economics is the study that shows how the people of a specific country, land, or culture deal with scarcity and the decisions to utilize their limited resources. It is the key element that helps to understand the well-being a country, culture, or society. Macroeconomics describes the economy as a whole by focusing on certain issues such as unemployment rate, interest rate, and inflation. This paper will discuss terms relating to macroeconomics and examples of economic activities. The first term that will be discussed is Gross Domestic Product or commonly known as the GDP. The GDP calculates the value of all goods and services of a country, region, or society within a given period of time. A country or region with a high GDP means that the people within the region are happy and it reflects a lot of transactions within the land that is providing the people with the goods and services they want. Since it is nearly second nature for people to consume goods and services, using GDP allows economists to show how good a country or region is doing with maximizing the people’s happiness or satisfaction with its limited resources. The Gross Domestic Product or (GDP) shows what a society or country has manufactured in any given year. Real GDP shows the total inflation, adjusted...
Words: 1100 - Pages: 5
...Fundamentals of Macroeconomics Paper ECO/372 Amy J. Eulett March 4th, 2013 Dr. Mike Thirtle There are many differences between the gross domestic products (GDP), the real GDP, the nominal GDP, the unemployment rate, the inflation rate, and the interest rate. There are also many different examples of economic activities. Groceries, massive layoff of any employees along with any decreases that may accrue in the taxes are all activities that can affect someone’s business, someone’s household or even the government. They are all related in some way or another. The Gross Domestic Product can also be called GDP for short. The GDP is the market value of any of the final services or goods that within the year was produced in the economy. The real GDP is from the current year that is inflation adjusted that measures the reflects the services and goods value. The nominal GDP is when the gross domestic product is figured out but has not even been adjusted for any inflation. The unemployment rate is the total amount of the labor force that does not have a job but are wanting and looking for a job. The inflation rate is the inflation or the rate being measured to see about any price increases. The interest rate is a current rate that is paid for using the money that was charged at an earlier time. The economic activities is when someone can provide goods to someone else that they hunt, fish, or make themselves. For example, hunting, fishing, manufacturing or even mining. With purchasing...
Words: 889 - Pages: 4
...Fundamentals of Macroeconomics Paper ECO/372 – Principles of Macroeconomics Dr. Robert Larkin Part 1 Gross domestic product is the most used economic measure when determining the total market value of all goods and services that are produced within a years’ time. These are all goods and services within one border including government outlays and public consumption, among a couple others. The GDP helps analyze the health of an economy and to decide the average standard of living. Transactions that are not reported to the government make the GDP less accurate as we do not know the true output of the community. Real gross domestic product (GDP) is the final value that the economic market gives to a product or service based on the current economy. This inflation is an adjusted measure that shows the true value of goods and services that are offered within one years’ time. This form of GDP adjusts with the prices levels to form more accurate analysis. The total output of a country’s resources fluctuates with the economy. Nominal (GDP) is the total market value of goods and services that are produced at current prices based on the economic market. These prices for goods and services already include changes within the market and are not re-adjusted for inflation or deflation. Unemployment rate defines the amount of people that are not currently employed and are actively looking for work. When this rate increases, the...
Words: 738 - Pages: 3
...Fundamentals of Macroeconomics Paper ECO/372 June 9th 2014 Professor Salazar Fundamentals of Macroeconomics The global economy is a concept important to understand and mastering this concept is successful by analyzing the term macroeconomics. Macroeconomics a term that illustrates the economy as a whole by describing economics aspects in different countries around the World as opposed to microeconomics which contemplates countries in a singular fashion. The following paper speaks to terms surrounding macroeconomics and consumer economic issues like unemployment, inflation, and interest rates. The Gross Domestic Product or GDP measures a societies manufacturing activities in a one year period. Two aspects of GDP are Real GDP and Nominal GDP and understanding the differences between the two is vital to computing Gross Domestic Product. Real GDP expresses how inflation effects the dollar value of a product of service each year and a reference for this change is the consumer price index. Nominal GDP however are not adjusted for inflation and will at times expresses bigger numbers than Real GDP. The unemployment rate expresses the percentage of people in different countries that either do not have a job or practice other means of obtaining currency. In addition, unemployment is directly affected by inflation another concept surrounding the fundamentals of macroeconomics. Inflation is the how much the price of a product of service increases in the economy. “Inflation...
Words: 648 - Pages: 3
...School of Business ------------------------------------------------- Syllabus ECO/372 Version 4 Principles of Macroeconomics Whenever there is any question including about what assignments are due, please remember this syllabus is considered the ruling document. Group Number: GA11BSB08 Course Start Date: 07/17/2012 Course End Date: 08/14/20112 Course Schedule: Workshop 1 – July 17, 2012 Workshop 2 – July 24, 2012 Workshop 3 – July 31, 2012 Workshop 4 – Aug. 7, 2012 Workshop 5 – Aug. 14, 2012 FACILITATOR: Farooq A. Khan COURSE LOCATION, DAY AND TIME: Gardena Learning Center, Tuesday @ 6PM REQUIRED READING: Students are required to read all materials available at the Course Materials site for this course on https://ecampus.phoenix.edu/portal/portal/public/login.aspx | Course Syllabus School of Business ECO/372 Version 4 Principles of Macroeconomics | Copyright © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved. Course Description This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies:...
Words: 1958 - Pages: 8
...------------------------------------------------- Course Syllabus Facilitator Name: Robert C. Paramo, MBA Course Name: Principles of Macroeconomics Course Number: ECO/372 Version 4 Group Number: SB12BSB02 Course Start Date: 01/24/2013 Course End Date: 02/21/2013 COURSE SCHEDULE: Workshop 1 – Jan. 24, 2013 Workshop 2 – Jan. 31, 2013 Workshop 3 – Feb. 07, 2013 Workshop 4 – Feb. 14, 2013 Workshop 5 – Feb. 21, 2013 COURSE LOCATION, DAY AND TIME: San Bernardino Learning Center, Thursdays, 6:00 p.m. to 10:00 p.m. REQUIRED READING: Students are required to read all materials available at the Course Materials site for this course on https://ecampus.phoenix.edu/portal/portal/public/login.aspx Whenever there is a question about what assignments are due, please remember this syllabus is considered the ruling document. Copyright Copyright ©2009 by University of Phoenix. All rights reserved. University of Phoenix© is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft©, Windows©, and Windows NT© are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix© editorial standards and practices. Policies Students/learners will...
Words: 1342 - Pages: 6
...Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 1 Fundamentals of Macroeconomics Paper – Part 1 * Gross Domestic Product (GDP) – The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. * Real GDP - An inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. * Nominal GDP- A gross domestic product (GDP) figure that has not been adjusted for inflation. * Unemployment Rate - The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. * Inflation Rate - The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling. * Interest Rate - The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). Running head: Fundamentals of Macroeconomics Paper Fundamentals of Macroeconomics Paper – Part 2 Fundamentals of Macroeconomics Paper – Part 2 Purchasing of groceries affects the households, government...
Words: 1339 - Pages: 6
...Fundamentals of Macroeconomics Essay I. Ojeda University of Phoenix ECO/372 June 26, 2013 Chris D. Foster Fundamentals of Macroeconomics Principles of Macroeconomics is the study of what people do or use to coordinate good and services, to understand economics we must know the fundamentals of economics. Macroeconomics is the decision making on how economics evolves in our everyday lives. Principles of Macroeconomics include a variety of terms that helps to determine the Economy in United States. Some of the terms by most economists are; Gross Domestic product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and Interest rate. The first subject that I will cover and discuss on this paper will include Gross Domestic Product (GDP). What’s Gross Domestic Product (GDP)? Is the standard living through its goods and services within the market value in a country in a period of time. Is the value of the amount of how much each household and businesses can produce and report each year in United States. GDP can also be measured by adding up the value of the domestic expenditure made at the end of the year. Those expenditures can be described as consumption; government expenses, investment, and total spend on exports. How Microeconomics can be impacted by GDP is when showing potential and economics are able to see what was expected. This can be used during recession to tract how the country’s economy is doing and...
Words: 1036 - Pages: 5
